Petrobras plans to sell five-, 10-year bonds, $3 bln tender

SAO PAULO May 17 (Reuters) - State-controlled Petróleo
Brasileiro SA plans to sell five- and 10-year dollar-denominated
bonds as early as Tuesday, alongside a repurchase of up to $3
billion of debt due in 2018, in an effort by the debt-laden
Brazilian oil producer to cut repayment risk in coming years.

In a securities filing, Rio de Janeiro-based Petrobras
said proceeds from the sale of the senior unsecured
notes will be used to finance the buyback of the 2018 bonds. Two
sources with direct knowledge of the transaction told Reuters
that the new securities are expected to have coupon rates of 9
percent and 9.25 percent, respectively.

Petrobras hired the investment-banking unit of Banco do
Brasil SA to manage the transaction, alongside those of Bank of
America Corp, JPMorgan Chase & Co and Banco Santander SA.